JSE-listed construction group Murray & Roberts’ (M&R’s) wholly-owned subsidiary Clough has been selected as the engineering, procurement and construction (EPC) contractor for the development of Perdaman Industries’ multibillion-dollar urea plant on the Burrup Peninsula, in Western Australia.

Australia-based Clough will be working in 50/50 joint venture (JV) with Italy-based Saipem, a world leader in engineering and drilling activities, as well as in the development of major energy and infrastructure projects.

Perdaman Industries is a Western Australia-based multinational chemicals and fertilisers group with a current focus on the production of urea, the most commonly traded nitrogenous fertiliser.

Perdaman will invest about $4.5-billion to develop the plant that will transform natural gas into urea. Perdaman has secured natural gas from Woodside under a 20-year gas supply agreement signed in November 2018.

The JV’s scope of work will include engineering, construction, pre-commissioning and commissioning of the ammonia and urea plant, including EPC for all site civils, the process plant, utilities, urea handling, storage and loadout, storage facilities and site buildings.

Clough CEO Peter Bennett says that, during the construction phase of this project, the world-class facility will create about 2 000 jobs in Western Australia and will be an important development for the Australian resources industry, while significantly reducing reliance on fertiliser imports.

Instead, the facility will help to generate about $850-million a year in export earnings for Western Australia.

The facility will consist of the urea fertiliser plant and related facilities with a capacity to produce two-million tonnes of urea a year. The facility includes a water treatment plant, a 100 MW power plant, as well as urea storage, loading and unloading facilities.

A closed conveyer will transport the urea 7 km directly to the Pilbara Ports Authority for shipping to local and offshore markets, with 50 to 100 shiploads expected a year.